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<br /> �s- U03050
<br /> UrrrnoxM Covex�rrrs. Borrower and L.ender covenant and agree as foliows:
<br /> 1. Payment of Principai and Inferest. Borrower shall promptly pay when due the principal of and interest on the
<br /> indebtedness evidenced by the Note, prepaymeat and late charges as provided in the Note, and the principal of and intercst
<br /> I on any Futum Advancu secuzed by this Mortgage.
<br /> 2. Fands Eor Ta=es and Insurance. Subject co applicable law or to a written waiver by Lender, Borrower shall pay
<br /> to I.ender on the day monthly instaliments of principal and interest are payable uoder the Note, until the Note is paid in full.
<br /> a sum (herein "Funds'� equai to one-twelfth of the yearly taxes and assessments which may attain prioriry over this
<br /> MoRgage, and ground rents on the Pmperty, if any, plus one-twelfth of yearly premium installments for hazard insurance.
<br /> plus one-[wNfth of yearly premium installments for mortgage insurance, if any, all as reasonably estimated initially and from
<br /> time to time by Lender on the basis of assessments and bills and reasonable estimates thereof.
<br /> The Funds shall be held in an institution the deposiu or accounts of which are insured or guaranteed by a Federal or
<br /> state agency (including Lender if I.ender is such an instimtion) . Lender shall apply the Funds to pay said taaces, assessments,
<br /> insurance premiums and ground rents. Lender may not charge for so holding and applying the Funds, analyzing said account,
<br /> or verifying and compiling said assessments and bills, untess Lender pays Borrower interest on the Funds and applicable law
<br /> permits Lender to make such a charge. Borrower and Lender may agree in writing at the time of execution of this
<br /> Mortgage that interest on the Funds shall be paid to Borrower, and unless such agreement is made or applicable law
<br /> nquires such interest to be paid, Lender shatl not be requirod to pay Borrower any interest or earnings oo the Funds. Lender
<br /> aha!! give fo Borrower, withoui charge, an annual accounting of the Funds showing credits and debiu to the Funds and the
<br /> purpose for which each debit to the Funds was made. The Funds are pledged as addi[ional security for the sums secured
<br /> by this Mortgage.
<br /> If the amount of the Funds held by L.ender, together with the future monthly installments of Funds payable prior to
<br /> the due dates of taxes, assessments, insurance premiums and ground rents, shall exceed the amount required to pay said taxes,
<br /> assessments, insurance premiums and ground renu as they fall due, such excess shall be, at Borrower s option, either
<br /> prompdy repaid to Borrower or credited to Borrower on monthly installments of Funds. If the amount of the Funds
<br /> held by Lender shall not be sufficient to pay taxes, assessments, insurance premiums and ground rents as they fall dua
<br /> Borrower shall pay to Lender any amount necessary to make up the deficiency within 30 days from the date notice is mailed
<br /> by Lender to Borrower requesting' payment thereof.
<br /> Upon payment in full of all sums secured by this Mortgagc, Lender shall promptty refund to Borrower aoy Funds
<br /> held by Lendec If under paragraph I8 hereof the Property is sold or the Property is otherwise acquired by Lender. Lender
<br /> shall apply, no later than immediately prior to the sale of the Property or its acquisition by Lender, any Funds held by
<br /> Lender at the time of application as a credit against the sums secured by this Mortgage.
<br /> 3. Application of Payments. Unless applicable law provides otherwise, all payments received by Lender under the
<br /> Note and paragraphs 1 and 2 hereof shall be applied by Lender first in paymen[ of amounts payable to Lender by Borrower
<br /> under paragraph 2 hereof, then to inrerest payable on the Note, then to the principal of the Note, and then to interest and
<br /> principal on any Future Advances.
<br /> ` 4. Chuges; Liens. Borrower shall pay all taxes, assessments and other charges, fines and impositions attributable to
<br /> the Property which may attain a prioriry over this Mortgage, and leasehold payments or ground rents, if any, in the manner
<br /> pmvided under pazagraph 2 hereof or, if not paid in such manner, by Borrower making payment, whm due, dircctly to the
<br /> payee thereof. Borrower s6a11 prompdy furnish to Lender all notices of amounts due under this paragraph, and in the event
<br /> Borrower shall make payment directly, Borrower shall promptly fumish to Lender receipts evidencing such payments.
<br /> Borrower shall prompUy discharge any lien which hu prioriry over this Mortgage; provided, that Borrower shall not be
<br /> j required to discharge any such lien so long as Borrower shall agree in writing to the payment of the obligation secured by
<br /> s such lien in a manner acceptable ro Lender, or shall in good faith contest such lien by, or defend enfomement of such lien in,
<br /> i legal proceedings which operate to prevent the enforcement of the Iien or forfeiture of the Propeny or any part thereof_
<br /> 5. Ha�rd Insunnce. Borrower shall keep the improvements now existing or hereafter erected on the Properry insured r
<br /> against loss by fire, hazazds included within the term "extended coverage", and such other hazards as Lender may require
<br /> and in such amounts and for such periods as Lender may require; provided, that Lender shall not require that the amount of
<br /> Fsuch coverage exceed that amount of coverage required to pay the sums secured by this Mortgage.
<br /> The insurance cazrier providing the insurance shall be chosen by Borrower subject to approvat by Lender, provided,
<br /> ? that such approval shatl not be unreasonabty withheld. All premiums on insurance policies shall be paid in the manner �.;> .: ,
<br /> ? provided under paragraph 2 hereof or, if not paid in such manner, by Borrower making payment, when due, directly to the
<br /> � insurance carrier.
<br /> All insurance policies and renewals thereof shall be in form acceptable to Lender and shall include a standard mortgage
<br /> � clauu in favor of and in form acceptable to Lender. Lender shall have [he righ[ to hold the policies and renewals thereof,
<br /> � and Borsower shall promptly furnish to Lender all renewal notices and all receipts of paid premiums. In the event of loss.
<br /> � Borrower shall give prort�pt notice to the insurance carrier and Lender. Lender may make proof of loss if not madc promptly
<br /> r by Borrower.
<br /> C Unless Lender and Borrower otherwisc agree in writing, insurance proceeds shall be applied to restoration or repair of
<br /> 1 the Property damaged, provided such restoration or repair is economically feasible and the ucurity of this Mortgage is
<br /> � not thereby unpaired. If such restoration or repair is not economically feasible or if the security of this Mortgage would
<br /> be impaired, the insurance proceeds shall be applied to the su[ns secured by this Mortgage, with the excess, if any, paid
<br /> � to Sorrower. If the Property is abandoned by Borrower, or if Borrower fails to respond to Lender within 30 days from the
<br /> i date notice is mailed by I.ender to Borrower that the insurance carrier offen to settle a ctaim for insurance benefits, Lender
<br /> ; is aut6oriud to collect and apply the insurance proceeds at Lender's option either to restoration or repair of the Property
<br /> ' or to the sums secured by this Mongage.
<br /> ? Unless Lendw and Borrower otherwise agree in writing, any such application of proceeds to principal shall not extend
<br /> ? or poatpone the due date of the monthly installments referred to in paragraphs 1 and 2 hereof or change the amount of
<br /> j such installmenu. If under paragraph l8 6ereof the Property is acquired by Lender, all right, title and interest of Borrower
<br /> in and to any insurance policies and in and ro the proceeds thereof resulting from damage to the Property prior to the sale
<br /> { or acquisition s6a11 pass to Lender to the extent of the sums secured by this Mortgage immediately prior to such sale or
<br /> acquisition.
<br /> � 6. FreaervaUon aud Malntenance of Property; Leaseholds; Condominiums; Planned I1nit Devdopments. Borrower . .
<br /> js6alt keep the Property in good repair and s6a11 not wmmit waste or permit impairment or deterioration of the Property
<br /> 3 and s6a11 comply with the provisioas of any lease if this Mortgage is on a leaschold. If this Mortgage is on a unit in a
<br /> , condominium or a planned unit development, Borrower shall perform all of Bonower s obligations under the declaration
<br /> i or covenants creadng or governing ffie condominium or planned unit development, the by-laws and regulations of the t
<br /> i condominium or planned unit development, and constituent documents. If a condominium or planned unit development
<br /> � rider is executed by Borrower and ncorded together with this Mortgage, the covenants and agreements of such rider .., �,_-.-. �, <
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<br /> shall be incorporated into and shall amend and supplement the covenants and agreemenu of this Mortgage as if the rider � �, -c ,
<br /> � j were a part hereof.
<br /> �,,,j 7. Pmtectlon of I.ender's Secudty. If Borrower fails to perform the covenants and agreements contained in this "
<br /> � Mortgage, or if any action or proceedina is commenced which materially affects Lender's interest in the Property, ;
<br /> ; including, but not limited to, eeninrnt domain, insolvency, code enforcement, or arrangements or proceedings involving a -. �
<br /> zbankrupt or decedea4 then Lender at Lender's option, upon notice to Borrower, may make such appearances, disburse such `s.
<br /> � sutns and take such action as is necessary to protect Lenders interest, including, but not limited to, disbursement of
<br /> ! reasonable attorney's fees and entry upon the Property to make repairs. If L.ender required mortgage insurance as a - - ;.c'
<br /> �� condition of making the loan stcured by this Mortgage. Borrower shall pay the premiums required to maintain si�ch
<br /> insutance in effwt until such time as the requirement for such insurance terminates in accordance with Borrower s and
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